The Mediator file weighed on the profitability of the Servier laboratory last year, but the pharmaceutical group, which continues to strengthen its position in cancer treatments, is confident for 2025. The number two French laboratory has returned to the red for the 2022/2023 financial year, recording a net loss of 623 million euros, after a profit of 192 million for the 2021/2022 financial year.
Its conviction by the Court of Appeal on December 20, 2023 in the Mediator case
“generates a loss of 450 million euros”
, explained its financial director Pascal Lemaire on Wednesday, during the presentation of the annual results.
Servier was fined more than 9 million euros and will have to repay more than 415 million euros to Social Security and mutual insurance companies.
He was found guilty of aggravated deception, homicide and involuntary injury, fraudulently obtaining administrative authorization and fraud for having marketed Mediator, an antidiabetic used as an appetite suppressant at the origin of one of the most resounding public health scandals in France.
The rest of its annual loss is explained by the payment
“in anticipation”
of additional payments to Agios Pharmaceuticals, an American biotech which sold its oncology division to it in 2020.
These payments are due for the
“clinical success”
of the anticancer drug vorasidenib.
An
“increase in the tax charge over the financial year”
also weighed on profitability.
Objectives to achieve in 2025
The laboratory, however, said it was
“confident”
in its ability to achieve its objectives for 2025: a turnover of 6 billion euros and a gross operating surplus (Ebitda) of 1.3 billion euros.
“From next year, no longer having the negative impacts of Mediator, we will return to the green
,” assured Pascal Lemaire.
The group has also confirmed its objectives for 2030: a turnover of 8 billion euros, including 3 billion in oncology.
Over 2022/2023, turnover increased by 9.2% compared to the previous financial year, to 5.327 billion euros.
It was notably driven
“by the growth in the volume of sales of medicines”
(original and generic) across the world to the tune of 11.4%, despite an unfavorable impact of exchange rates, indicates Servier, which was able to align its price on inflation
“in certain countries”
.
Generic activities, which cover a wide range of pathologies, increased by 8.8%, representing almost a quarter of sales.
Asked about rumors of a possible sale of its French subsidiary Biogaran, the financial director indicated that Biogaran was
“a very good asset which only needs to be developed”
.
This subsidiary distributes generics and holds 32% market share in France.
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The laboratory targets difficult-to-treat cancers
The group's historical activity in cardio-metabolism and venous diseases represents more than half (52.8%) of its turnover, with growth of 7.4% in Daflon (treatment of venous insufficiency). which remains Servier's leading drug, with sales of around 600 million euros.
The laboratory, which targets difficult-to-treat cancers, such as digestive, pediatric, blood and brain tumors, continues its rise in oncology, which now represents 20.2% of turnover, compared to 17 .4% during the previous financial year.
A performance which exceeded its expectations since the turnover exceeded the symbolic bar of one billion euros in this segment (1.075 billion), two years before the set objective.
the laboratory currently has seven drugs targeting cancers with a high unmet medical need.
The anticancer drug Tibsovo (to treat leukemia and bile duct cancer) shows growth of almost 50% over 2022/23 to 380 million euros in sales, thus becoming
“the second drug in the group”
, underlined Pascal The mayor.
Servier devotes nearly 70% of its R&D budget to oncology, a specialty which involves thirty-five research and development projects.
However, the acceleration of investments in oncology will encourage the company to
“make trade-offs”
in its research projects focused on immuno-inflammation and neuroscience, warned Olivier Laureau, president of Servier.